Generally, all purchases of tangible property (not services) are subject to 6.5% sales tax. NC A&T State University is exempt for sales tax purposes. Therefore, with only a few exceptions all purchase requests should exclude sales tax. If a vendor does not exclude the tax on its invoice, the appropriate tax will be deducted from the invoice. Some exceptions, where sales tax is charged are listed on the attached exception certificate.

Contract and Grant Expenditures

The 1991 Session of the North Carolina General Assembly amended the General Statutes to provide that "constituent institutions of the University of North Carolina may obtain a refund of sales and use tax paid by them for tangible personal property acquired by them through the expenditure of contract and grant funds".

The University policy for paying sales and use tax allows departments with contract and grant accounts to have full use of those funds. The tax portion of purchases from contract and grant accounts will be automatically charged to and paid from a special trust fund account, not the grant. The trust account will in turn receive any sales and use tax refund when the State reimburses the University.

However, while contract and grant accounts will not be charged sales and use tax on purchases made from those funds, the purchase request still must include the proper sales tax amount.

Also, as mentioned previously, hotel/motel occupancy tax is not considered a sales tax and therefore will be charged to the grant, if applicable.